47-point drop was only 1.4%

The Ticker cpB

January 30, 1992|By Julius Westheimer

Falling 47 points after Fed chief Alan Greenspan appeared negative on further interest rate cuts, the Dow Jones average closed yesterday at 3,224.96. Optimists stated that the 1.4 percent drop was not catastrophic, especially from this high level.

MARKET WATCH (in proportion received): "Major emphasis should now be on selling rather than buying." (Geraldine Weiss, Investment Quality Trends). . . . "This is no time for long-term investors to be buying stocks. There may be 100-200 points left on the upside, since stocks always go to extremes, but we're in the 'sell' range. Raise cash now." (Pad System Report). . . . "Stocks are approaching the end of a 10-year bull market. DJ 3,700 will mark the blowoff." (Richard Arms, money manager). . . . "Volume is now the highest since March 1991, but as long as prices continue to move higher with volume, high volume doesn't worry me." (A. C. Moore, Argus Investment Management). . . . "Buy a stock the way you would buy a house. Understand and like it so you'll be content to own it, for the long run, in any market." (Warren Buffet). . . . "In the long run we'll all be dead." (John Maynard Keynes).

LOOKING BACK: My father, Milton F. Westheimer, was born 120 years ago tomorrow. A member of the New York Stock Exchange for many years, with an office at 211 E. Redwood St., Baltimore, Dad taught me many things I will long remember. Samples: "Bonds are the house you live in. . . . Son, if you speculate, buy on margin or sell short, you will go broke. . . . Don't talk too much about what you're doing. . . . One dollar invested on 'Black Friday' is worth $10 any other day. . . . Never try to buy at the bottom or sell at the top. . . . Be patient; there is always another day. . . . Never fight a competitor; sell your own merchandise. . . . A newsboy cries his wares many times before he earns a penny." (And from Dad's Yale diary, 1891: "My half of rent for 2 rooms was 75 cents a week; we bought our own coal; my board was $5 a week; beer was 5 cents a glass, one week's laundry 15 cents.")